This paper investigates the "skill bias" of organizational change (OC), examining whether modern organizational changes are complementary with skilled workers. Using panel data from British and French establishments, three key findings are identified: (i) OC tends to reduce the demand for unskilled workers in both countries; (ii) OC is slower when the relative wage of skilled workers is higher in the region; (iii) OC increases productivity in establishments with higher initial skill levels. The paper argues that OC, technology, and human capital are complementary assets in firms. The widespread introduction of new organizational forms may have contributed to the declining demand for less skilled workers in OECD countries. Theoretical considerations suggest that complementarities between technical change, organizational change, and skills exist. These complementarities imply that OC increases the demand for skills, relative shortages of human capital can slow organizational innovation, and firm productivity is enhanced by the combination of decentralization and deepening human capital. The paper uses econometric models to test these hypotheses, finding support for the predictions that OC leads to a decline in the demand for less skilled labor, increases the probability of OC when the relative cost of skills falls, and has a larger impact on productivity in workplaces with higher skill levels. The data used include information on organizational change, establishment characteristics, and skills from British and French sources. The British data come from the Workplace Industrial Relations Survey (WIRS), while the French data come from the REPONSE survey. The paper finds that OC is associated with a significant reduction in the proportion of unskilled manual workers, and that the effects of OC are robust to various controls. In France, the results show a significant negative effect of OC on the change in the employment share of unskilled manuals, and that the effects of OC are robust to the inclusion of additional variables. The paper concludes that OC, technology, and human capital are complementary assets in firms, and that the widespread introduction of new organizational forms may have played an important role in the declining demand for less skilled workers in OECD countries.This paper investigates the "skill bias" of organizational change (OC), examining whether modern organizational changes are complementary with skilled workers. Using panel data from British and French establishments, three key findings are identified: (i) OC tends to reduce the demand for unskilled workers in both countries; (ii) OC is slower when the relative wage of skilled workers is higher in the region; (iii) OC increases productivity in establishments with higher initial skill levels. The paper argues that OC, technology, and human capital are complementary assets in firms. The widespread introduction of new organizational forms may have contributed to the declining demand for less skilled workers in OECD countries. Theoretical considerations suggest that complementarities between technical change, organizational change, and skills exist. These complementarities imply that OC increases the demand for skills, relative shortages of human capital can slow organizational innovation, and firm productivity is enhanced by the combination of decentralization and deepening human capital. The paper uses econometric models to test these hypotheses, finding support for the predictions that OC leads to a decline in the demand for less skilled labor, increases the probability of OC when the relative cost of skills falls, and has a larger impact on productivity in workplaces with higher skill levels. The data used include information on organizational change, establishment characteristics, and skills from British and French sources. The British data come from the Workplace Industrial Relations Survey (WIRS), while the French data come from the REPONSE survey. The paper finds that OC is associated with a significant reduction in the proportion of unskilled manual workers, and that the effects of OC are robust to various controls. In France, the results show a significant negative effect of OC on the change in the employment share of unskilled manuals, and that the effects of OC are robust to the inclusion of additional variables. The paper concludes that OC, technology, and human capital are complementary assets in firms, and that the widespread introduction of new organizational forms may have played an important role in the declining demand for less skilled workers in OECD countries.